The renewable energy sector is undergoing one of the most rapid transformations in human history. Despite challenges in 2025 — including policy shifts like the One Big Beautiful Bill Act in the United States that rolled back key clean energy tax credits and imposed new sourcing restrictions — renewables continued to expand globally and dominate new power capacity additions. Renewables are poised to reshape the world’s energy mix in the coming decade, driven by technological innovation, cost declines, and serious commitments from governments and industries worldwide.
Renewable Energy in 2025: Setbacks and Resilience
In the United States, policy shifts in 2025 — including the One Big Beautiful Bill Act rolling back key clean energy tax credits and introducing stricter foreign sourcing rules — contributed to a sharp decline in renewable investment. Overall renewable investments fell by about 36% in early 2025 compared to 2024, reflecting increased uncertainty among developers and financiers. Despite this slowdown, renewables continued to dominate U.S. power sector growth, accounting for nearly 90% of new capacity additions through September 2025, led primarily by solar and battery storage.
Globally, renewable energy reached record expansion levels in 2024, with over 580 GW of new capacity added — more than 90% of all new power capacity worldwide — and solar alone contributing over 450 GW. This strong momentum continued into 2025 across Asia, Europe, and the Americas, reinforcing renewables as the backbone of the global energy transition.
Leading Technologies Powering the Energy Transition
Solar PV and onshore/offshore wind lead capacity growth through 2030, fueled by cost drops and innovations like perovskite tandem cells boosting efficiency . Energy storage, including lithium-ion and emerging sodium-ion batteries, pairs with smart grids to manage intermittency and enable dispatchable renewables . Green hydrogen scales for hard-to-decarbonize sectors (steel, chemicals, shipping), supported by cheaper electrolyzers and strategies in Asia, Europe, and the Middle East .
Global Trends and Growth Outlook
The International Energy Agency (IEA) projects that renewable energy will become the world’s largest source of electricity by mid-2026, surpassing coal as the dominant provider of power generation. Renewables are expected to account for 43–45% of global electricity generation by 2030, nearly double their share in 2024, driven by rapid expansion in solar and wind capacity.
Total renewable power capacity is projected to increase by approximately 4,600 GW between 2025 and 2030 — roughly doubling deployment compared to the previous five years. Much of this growth is concentrated in countries like China, India, and members of the European Union, while regions in the Global South continue to face challenges such as grid integration, financing gaps, and infrastructure bottlenecks despite strong solar and wind uptake.
Over the 2025–2030 period, renewables are expected to meet more than 90% of global electricity demand growth, led by solar photovoltaics and, to a lesser extent, wind energy.
Predictions for 2026 and Beyond
Global renewable energy capacity is projected to continue setting new records through 2026 and beyond, with renewables expected to overtake coal as the largest source of electricity generation worldwide by mid-2026. This expansion will be driven by sustained deployment of solar PV and wind, which together are forecast to supply the vast majority of new power generation growth, even as coal’s share declines in major economies.
Supportive policies in regions such as Asia and Europe are accelerating renewable rollouts, while short-term headwinds persist in the U.S., where policy changes have dampened investment but utility-scale solar and battery storage are expected to rebound with stronger domestic manufacturing and project execution.
In addition, technologies such as green hydrogen and long-duration storage systems are expected to mature further, enhancing grid flexibility and accelerating decarbonization in hard-to-abate industrial sectors as renewable penetration deepens.
Energy Evolution Awards & Conference 2026: A Global Platform
The Energy Evolution Awards & Conference 2026, to be held in Dubai, UAE, will bring together global policymakers, energy leaders, innovators, and investors to explore advancements in clean energy, smart grids, storage, hydrogen, and decarbonization. The event combines high-level discussions with a technology showcase and awards recognizing impactful projects accelerating the global energy transition, making it a key platform for shaping energy strategies in 2026 and beyond.
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